===== SIDA 1 ===== The interim report refers to the group for which Truecaller AB (publ) (559278 –2774) is the parent company, called Truecaller in the report. January-March 2024 INTERIM REPORT ===== SIDA 2 ===== 2 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Truecaller Interim Report 2024 January-March 2024 (Q1) Comparative figures refer to January-March 2023 • Net sales increased by 10 percent to SEK 427.2m (387.1). • EBITDA amounted to SEK 151.0m (150.0), corresponding to an EBITDA margin of 35.4 (38.8) percent. Excluding the costs of incentive programs, EBITDA would have been SEK 162.3m (161.1), equivalent to an EBITDA margin of 38.0 (41.6) percent. • Profit after tax increased with 22 percent and amounted to SEK 133.0m (109.1). • Earnings per share increased by 27 percent and were SEK 0.38 (0.30) and diluted earnings per share were SEK 0.38 (0.30). • The average number of active users (MAU) increased by 39.0 million to approximately 383.4 million (344.4). • Net sales increased by 8 percent in India, by 9 percent in the Middle East and Africa and by 24 percent in the rest of the world. • Truecaller's board of Directors introduced a dividend policy saying that 25 percent of net profit after tax should be distributed as a dividend. • For the Annual General Meeting at 23rd of May Truecaller's board of Directors propsoses a dividend of 1.70 SEK per share for the financial year 2023, to cancel all repurchased B-shares which is equivalent to 7.5% of the outstanding share capital and asks for a new mandate to repurchase of up to 10 percent of outstanding shares. Read more at page 13. FINANCIAL KEY FIGURES Group, SEKm (unless otherwise stated) 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Net sales 427.2 387.1 1,728.9 Gross profit 322.8 291.0 1,307.7 Gross margin (%) 75.6% 75.2% 75.6% EBITDA 151.0 150.0 702.9 EBITDA margin (%) 35.4% 38.8% 40.7% EBIT (operating profit) 138.0 139.8 657.7 EBIT margin (%) 32.3% 36.1% 38.0% Profit or loss after net financial income or expense 173.5 147.0 712.3 Basic earnings per share (SEK) 0.38 0.30 1.49 Diluted earnings per share (SEK) 0.38 0.30 1.49 Equity 1,823.3 1,738.4 1,743.7 Total assets 2,204.1 2,123.5 2,160.3 Equity to assets ratio (%) 82.7% 81.9% 80.7% Employees at the end of the period 420 400 419 ===== SIDA 3 ===== 3 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Significant events during the quarter Truecaller continued to invest in product development by launching new products and functions and by further improvements of the user experience. • Continued user growth. During the quarter, the number of monthly active users (MAU) increased to 383.4 million, which was an addition of approximately 39.0 million users in comparison to the first quarter 2023. The daily active users grew with 36 million in 2024, reaching an average of 314 million during the quarter. In 2024, monthly active users increased by 23.3 million in India and by 15.7 million outside of India. MAU’s and DAU’s increased by a bit more than 9 million compared to the fourth quarter of 2023. • Truecallers growth initiatives in selected growth regions developed well. During the first quarter he annualized growth rate in Colombia was about 50 percent, in Nigeria almost 40 percent and in Chile almost 30 percent. In US, where the strategy is focused on attracting more subscribers, income from subscriptions increased with more than 60 percent compared to the first quarter of 2023. • Truecallers Ad Revenues increased by 5 percent compared to the first quarter of 2023. Contribution to growth came from increased number of users, increased engagement per user, new ad formats, improvement of the ad platform, and income from the IPL-season in cricket in India which started earlier in 2024 compared to 2023. • Truecaller's strategy to increase the conversion to paying users continued to show a positive development. The number of paying users increased by 15 percent compared to the same period the previous year, exhibiting a higher growth rate than for the total number of users. More advanced features, such as the digital AI-based Truecaller Assistant and Call Recording, had a positive impact on the average price per paying user, which reached an all-time-high level during the quarter. Subscription revenues increased by 25 percent compared to the first quarter of 2023 and the development was especially strong on iOS and in markets like US, Latin America, Malaysia and India. • The robust growth for Truecaller for Business continued. Overall, revenues for Truecaller for Business increased by 44 percent compared to the first quarter of 2023. The growth was driven by growth within verified business calls, business messaging, as well as revenues from the newer risk products. Demand for verified business calls remains strong, and the average revenue per customer reached a new record level during the quarter. Business Messaging increased volumes by 50 percent compared to the same quarter the previous year, and during the quarter, a new collaboration agreement was signed with Tanla, which also opens up for more CPaaS companies to use the service. The first customers were onboarded for the risk intelligence product, and revenues were reported towards the end of the quarter. Other significant events. • During the quarter Truecaller bought back 2.6 million B-shares bringing the total repurchased B- shares to 27,904,571 as of March 31. Additionally, a total of 5,600,000 C-shares were issued and repurchased to facilitate outstanding incentive programs. See note 6 for further information. Events after the period • Truecaller repurchased an additional 0.7 million shares after the quarter ended and in total 28,647,115 B-shares have been repurchased. Additionally, a total of 5,600,000 C-shares were issued and repurchased to facilitate outstanding incentive programs.The total number of shares that can be repurchased under the authorization from the 2023 Annual General Meeting amounts to 37,905,971 shares, valid until the AGM in May 2024. See note 6 for further information. • Truecaller's board has proposed to the shareholders' meeting on May 23 that all repurchased B- shares shall be cancelled, corresponding to approximately 7.5 percent of the outstanding capital. Truecaller's board also proposes that the annual general meeting authorizes the board to repurchase up to 10 percent of the outstanding share capital until the annual general meeting in 2025. Read more on page 13. • Truecaller's board introduced a dividend policy stating that 25 percent of the year's net profit should be distributed to the shareholders and proposes a dividend of 1.70 SEK per share for the financial year 2023. The regular dividend according to the newly established dividend policy is 0.40 SEK per share, and in addition to that, the board proposes an extra dividend of 1.30 SEK per share. Read more on page 13. ===== SIDA 4 ===== 4 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Improved earnings and robust profitability with increased investments Truecaller continued to grow strongly in the first quarter. We added more than nine million monthly and daily active users, and on average the number of monthly users was 383 million. Conversion of paying users continued to increase, and with the launch of more advanced premium features, the average revenue per paying user reached a new record level. Net sales increased by 10 percent compared to the first quarter of 2023 to SEK 427,2 million (387,1). Ads, subscription and business revenue contributed to the increase. Our recurring revenue, from subscriptions and business, grew in total by 33 percent. Our profit also improved. Earnings per share increased by 27 percent to SEK 0.38 (0.30). EBITDA increased by 1 percent to SEK 151,0 million (150,0) and the EBITDA margin was 35.4 percent (38.8). We have seen positive results from our increased growth investments in selected markets. The investments in Nigeria and Latin America are designed to strengthen our market position and accelerate user growth. In the U.S., the strategy is mainly to grow the number of paying users. In Nigeria, Colombia and Chile, annualized user growth in the quarter amounted to between 30 and 50 percent, and in the U.S., subscription revenue rose by more than 60 percent. Average revenue per paying user in the U.S. is currently 100 times higher than the average for a free user of Truecaller globally. FIRST QUARTER 2024 ===== SIDA 5 ===== 5 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Our ad revenue increased by 5 percent compared to the first quarter of 2023. Although the quarter started off slow, revenues gradually improved. This uptick was driven by a higher level of user engagement with the Truecaller app and an increased availability of ad space within the app. While overall ad demand remains subdued, the timing of events like the Indian Premier League (IPL) cricket tournament, which began in the first quarter of 2024 as opposed to 2023, also contributed positively to this quarter's performance. Our expectation is that income from the full IPL season will be significantly lower in 2024 compared to 2023, with revenue evenly distributed between Q1 and Q2. This is in contrast to last year, when the majority of IPL-related income was almost entirely recorded in Q2. In the long term, we see an opportunity to introduce more engaging ad formats in the product such as video to all our users which would broaden our ads business further. As a first step this requires that we increase the number of app interactions per user by improving the user experience and building further value into the product. Small but meaningful improvements make a difference, and this has been a major focus internally since last year. The number of app interactions from our daily engaged users has until today increased by more than 50 percent compared to the first quarter in 2023. This work is progressing and the next step is to test our new video format in the coming quarters before we scale up. Revenue from paying subscribers increased by 25 percent and the number of paying users grew by 15 percent compared to the first quarter of 2023. Our AI-driven communication services continue to contribute positively to both conversion and average price per paying user. Among the launches during the quarter was Call Recording in India, and in coming quarters we have more exciting new services to introduce. The focus is on among other things strengthening fraud protection for users. We are positive about further increasing the conversion and the average price per paying user. Truecaller for Business (TfB) continued to perform strongly and the number of verified companies is growing at a solid pace. Average revenue per customer was record high in the quarter and we see good opportunities to raise the price of this very popular product going forward. In total, TfB revenue increased by 44 percent to SEK 49.6 million (34.4) with contributions coming from Verified Business calls, business messaging, and the recently launched risk intelligence product. The need for Truecaller globally is greater than ever. I am proud to say that the number of users grew by almost the size of Sweden’s population in a single quarter. Truecaller is a company with high profitability, strong cash flow, and a balance sheet with no financial debt. Our profitability enables us to finance both further growth investments and earnings distributions to our shareholders in the form of share repurchases and dividends. We have since the end of September 2022 repurchased shares for just under SEK 1 billion, corresponding to 7.5 percent of the outstanding share capital, which we have financed in its entirety with our cash flow from operating activities. Against this backdrop we have decided to introduce a dividend policy of 25 percent of the annual profit, combined with an extra dividend for 2023. The proposal to the annual general meeting at the end of May is to distribute a total of SEK 1.70 per share. Provided that the annual general meeting resolves to pay a dividend, this would mean that Truecaller’s cash at hand and short-term investments will be reduced to approximately SEK 1 billion. The board of directors is also proposing that the shares repurchased so far, corresponding to 7.5 percent of the share capital, be canceled. In return, the board is asking for a new mandate to repurchase an additional 10 percent of the outstanding shares after the shareholders’ meeting. The need for Truecaller globally is greater than ever. I am proud to say that the number of users grew by almost the size of Sweden’s population in a single quarter. I look forward to continuing to create more secure communication for even more people in the future. Financially, our goal is to achieve a balance between profitability and strong growth of recurring revenue over time. With a solid financial foundation to build on, we look forward to continuing to invest in our long-term growth initiatives at the same time that we continue to return value to our shareholders through share buybacks and dividends. Alan Mamedi, CEO and Co-founder ===== SIDA 6 ===== 6 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Truecaller at a glance Quarterly review, financial data FINANCIAL KEY FIGURES Group, SEKm (unless otherwise stated) 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Net sales 427.2 387.1 1,728.9 Gross profit 322.8 291.0 1,307.7 Gross margin (%) 75.6% 75.2% 75.6% EBITDA 151.0 150.0 702.9 EBITDA margin (%) 35.4% 38.8% 40.7% EBIT (operating profit) 138.0 139.8 657.7 EBIT margin (%) 32.3% 36.1% 38.0% Profit or loss after net financial income or expense 173.5 147.0 712.3 Basic earnings per share (SEK) 0.38 0.30 1.49 Diluted earnings per share (SEK) 0.38 0.30 1.49 Equity 1,823.3 1,738.4 1,743.7 Total assets 2,204.1 2,123.5 2,160.3 Equity to assets ratio (%) 82.7% 81.9% 80.7% Employees at the end of the period 420 400 419 OPERATIONAL KEY FIGURES January-March 2024 Total India Middle East & Africa Rest of the world Monthly Active Users (MAU), quarterly average (millions) 383.4 272.6 78.1 32.7 Daily Active Users (DAU), quarterly average (millions) 314.0 234.4 58.6 21.0 Cost per mille impressions (CPM) for ad sales (SEK) 0.75 0.65 1.28 2.70 Average monthly revenue per user (ARPU) for premium subscriptions (SEK) 9.04 5.75 9.11 15.13 January-March 2023 Total India Middle East & Africa Rest of the world Monthly Active Users (MAU), quarterly average (millions) 344.4 249.3 69.9 25.2 Daily Active Users (DAU), quarterly average (millions) 278.0 208.8 52.3 16.9 Cost per mille impressions (CPM) for ad sales (SEK) 0.94 0.84 1.37 3.15 Average monthly revenue per user (ARPU) for premium subscriptions (SEK) 8.34 4.77 10.95 13.37 ===== SIDA 7 ===== 7 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB January-December 2023 Total India Middle East & Africa Rest of the world Monthly Active Users (MAU). quarterly average (millions) 360.6 259.0 73.3 28.9 Daily Active Users (DAU). quarterly average (millions) 292.6 218.6 55.2 18.7 Cost per mille impressions (CPM) for ad sales (SEK) 1.00 0.89 1.38 3.35 Average monthly revenue per user (ARPU) for premium subscriptions (SEK) 8.63 5.28 10.27 14.02 331 338 344 356 368 374 261 271 278 289 298 305 0 50 100 150 200 250 300 350 Q322 Q422 Q123 Q223 Q323 Q423 Users, millions Monthly Active Users (MAU), avg Daily Active Users (DAU), avg 450 444 387 518 399 425 0 100 200 300 400 500 600 Q322 Q422 Q123 Q223 Q323 Q423 MSEK Net sales 337 333 291 395 298 323 70% 72% 74% 76% 78% 80% 0 50 100 150 200 250 300 350 400 450 Q322 Q422 Q123 Q223 Q323 Q423 MSEK Gross profit Gross margin 181 136 150 239 146 169 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 50 100 150 200 250 300 Q322 Q422 Q123 Q223 Q323 Q423 MSEK EBITDA EBITDA-margin ===== SIDA 8 ===== 8 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Financial performance First quarter 2024 (January-March) Revenues Total revenues during the first quarter increased by 11 percent compared to the corresponding quarter last year and amounted to SEK 431.0 (388.1) million. Other income, in addition to net sales amounted to SEK 3.8 (1.0) million. Net sales during the first quarter increased by 10 percent compared to the corresponding quarter last year and amounted to SEK 427.2 (387.1) million. All revenue streams contributed to the growth. Currency effects had a negative effect on revenues during the quarter, see Currency exposure below. Net sales distributed by region Net sales in India increased by 8 percent to SEK 316.8 (292.2), with 9 percent to SEK 53.5 (49.2) million in the Africa and the Middle East and by 24 percent in the rest of the world to SEK 56.8 (45.7) million. Weaker currencies in some of Truecaller's largest markets in the Middle East and Africa region had a negative impact on net sales. Net sales distributed by service Ad revenues increased by 5 percent to SEK 317.6 (303.9) million. A lower demand in the wake of weak global macroeconomic development and a larger supply in the Indian market resulted in lower average pricing for Truecallers ads products (CPM) which decreased by approximately 20 percent. Truecaller continues to maximize revenue per user instead of CPM or fill rates. The number of impressions increased by almost 30 percent compared to the same period last year. Truecaller continues to enhance its ability to display ads more efficiently for users by improving the quality of ad requests and rendering capabilities (render rate). A contributing factor to number of impressions has also been increased engagement with the Truecaller-app from the user base. Revenue from premium subscriptions increased by 25 percent to SEK 58.4 (46.5) million . The conversion rate to becoming a paid subscriber continued to improve. Truecaller has also added more advanced features to the premium offering in the past year, which has had a positive impact on both revenue per user and the growth of paying users. The growth has been particularly strong among iOS users. Revenue from Truecaller for Business (TfB) increased by 44 percent to SEK 49.6 (34.4) million. The number of connected customers continues to show good growth both in India and in other markets, and in total Truecaller for Business now has active customers in 3 7 countries. In collaboration with CPAAS company Tanla, Truecaller also sends B2C messages to Truecaller's users. The volumes of business messages have gradually increased and have also contributed to income growth. Other income in net sales amounted to SEK 1.6 (2.3) million. Gross profit The gross profit increased by 11 percent to SEK 322.8 (291.0) million compared to the same period last year. The gross margin amounted to 75.6 (75.2) percent. The gross margin is mainly determined by fees to partners such as Google and Apple, and by costs for verification of new users and for servers used for the company's services. Operating profit EBITDA amounted to SEK 151.0 (150.0) million and the EBITDA margin amounted to 35.4 (38.8) percent. Operating profit (EBIT) decreased somewhat to SEK 138.0 (139.8) million, corresponding to an operating margin of 32.3 (36.1) percent. Staff costs during the quarter increased to SEK 94.9 (84.8) million. Salary costs increased as an effect of increased number of employees and the yearly salary adjustment. The group's long-term incentive program entailed a salary cost for the period of SEK 10.5 (10.6) million with a corresponding increase in equity and social security contributions of SEK 0.8 (0.4) million reported as a provision in the balance sheet. Salary costs are valued at fair value and amortized over the term of the program. The social security contributions are affected by the share price at the end of each accounting period and may therefore amount to significantly higher amounts in the future and create volatility in the income statement. Excluding costs for incentive programs, the EBITDA margin during the quarter would have increased by 2.6 (2.9) percentage points and been 38.0 (41.6) percent. See more info in note 5. India 74.2% Africa and Middle East 12.5% RoW 13.3% ===== SIDA 9 ===== 9 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Other external costs increased to SEK 80.7 (57.1) million compared to the same period last year. The increase in costs is mainly due to increased growth investments in several growth regions. Costs have primarily increased due to increased investments in user acquisition through digital marketing and increased expenses for agreements with phone manufa cturers where the Truecaller app comes pre-installed. Profit and earnings per share for the period Profit before tax amounted to SEK 173.5 (147.0) million. Profit after tax for the period was SEK 133.0 (109.1) million. Net financial income amounted to SEK 35.5 (7.2) million and comprises positive exchange rate differences of SEK 10.2 (- 3.0) million, an effect on result from valution to fair value of SEK 13.4 (7.5) million, interest income of SEK 13.5 (4.1) million and other financial expenses of SEK -1.6 (-1.3) million. The total tax amounted to SEK 40.5 (37.9) million which corresponds to an effective tax rate of 23.3 (25.8) percent for the Group. Basic earnings per share were SEK 0.38 (0.30) and diluted earnings per share were SEK 0.38 (0.30). Cash flow and financial position Net cash from operating activities amounted to SEK 55.9 (80.1) million of which SEK -61.6 (-31.2) million was attributable to changes in working capital and SEK -57.7 (- 46.6) million was attributable to income tax paid. Net cash from investing activities amounted to SEK -3.5 (-519.1) million and included an investestment in short -term interest rate funds of SEK – (-500,0) million. Net cash used in financing activities was SEK -100.9 (-189.1) million and included purchase of treasury shares SEK -74.8 (-182.2) million and repurchase of warrants of SEK -18.2 (-) million. Net cash for the period was SEK -48.6 (-628.1) million. Truecaller had cash and cash equivalents of SEK 591.9 (699.5) million at the end of the quarter and SEK 954.6 (907.9) million invested in short -term interest rate funds. . The equity to assets ratio was 82.7 (81.9) percent. Truecaller have a revolving credit facility of SEK 500.0 (500.0) million. SEK 0.0 (0.0) million had been utilized as of the reporting date. Consolidated total assets amounted to SEK 2,204.1 (2,123.5) million at 3 1 March 2024. The carrying amounts of financial assets and financial liabilities are estimated to coincide with fair value in all material respects. Trade receivables for the Group amounted to SEK 86.2 (60.0) million and claims on advertising networks and platform owners was SEK 127.6 (93.8) million. The increase in trade receivables is attributable mainly to the increase in direct sales in the advertising business and growth in Truecaller for Business. Payment terms for the company’s customers are normally 30 -60 days. Recognized but unrealized customer credit losses amounted to SEK 5.3 (2.2) million as of 3 1 March 2024. The claims on advertising networks and platform owners is mainly linked to outstanding claims against Google and Meta. Investments During the first quarter of 202 4, SEK 2,8 (1,1) million were capitalized as internally developed intangible assets. Currency exposure The majority of Truecaller’s revenues are denominated in Swedish kronor (SEK) via partners including Google and Apple. Accordingly, there is little direct currency exposure. In turn, these partners bill users of Truecaller’s services partly in local curren cy, which entails indirect currency exposure. Truecaller does not, however, have complete information concerning currency exposure or how currency effects are managed by partners and thus cannot at present accurately quantify indirect currency exposure. A depreciation of SEK against currencies including USD and INR, however, has a positive impact on the company’s sales and profit, although it also increases the company’s costs. The largest currency exposures are against INR and USD. The company estimates that exchange rate changes had a negative impact on sales during the first quarter of 2024 compared to the corresponding quarter in 202 3. The company's estimate is that exchange rate s also had a negative effect on the EBITDA margin. Parent company Parent company income for the quarter amounted to SEK 1.9 (1.6) million which refers to billing of subsidiaries for services rendered. The profit before tax amounted to SEK - 4.0 (1.4) million. The profit after tax amounted to SEK -3.3 (1.2) million. Cash and cash equivalents on 3 1 March 2024 amounted to SEK 91.4 (173.5) million. In excess to the cash and cash equivalents the parent company has SEK 400.0 (400.0) million invested in short-term interest rate funds. No investments have taken place in intangible or tangible assets. At the end of the period, 2 (2) people were employed in the parent company. ===== SIDA 10 ===== 10 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Product update Core product enhancements for stronger fraud and spam protection Truecaller continues to improve the core offering in order to deliver a smarter, safer, and more efficient communication experience for its users. In the first quarter, Truecaller improved data quality further by expanding its scope of partnerships with ex ternal data providers, especially in markets of strategic importance such as the US. In parallel, Truecaller continues to advance its AI and machine learning capabilities to ensure that users receive the most relevant information about unknown numbers, acr oss business, spam, and fraudulent callers. To give more context on communications from businesses, machine learning efforts have facilitated more precise business categorization. Leveraging calling patterns and name suggestions from user contributions, Truecaller’s algorithms now assign tags to inf orm the user of exactly what type of business is calling. In the first quarter, this capability was expanded to cover 19 languages. Truecaller also significantly enhanced its spam protection features in the first quarter, offering users greater control over their preferences. Android users now have the choice between basic spam protection, which automatically blocks calls from a limited number of top spammers in their region, and Max protection, a premium feature that blocks all known spammers. With the introduction of Max protection as a paid subscription offering, calls from any recognized spammer are automatically blocked, offering users a solution that saves time and reduces frustration. This enhancement builds on the ongoing development of Truecaller’s AI; as the system accumulates more spam call data and user feedback, it is expected to continually improve over time. On the fraud side, Truecaller strengthened AI -driven fraud protection for SMS, a feature introduced in early 2023 that leverages machine learning algorithms to actively identify and flag fraudulent messages. In the first quarter, Truecaller expanded this capability through a combination of community feedback and machine learning initiatives. Utilizing a fully automated flywheel system, Truecaller detects fraudulent messages by ana lyzing sender signals and message patterns. By the end of the quarter, Truecaller was sending over nine million fraud alerts on a daily basis with an accuracy rate of 99%, and the number of users protected from SMS fraud through this feature grew 13X compared to the previous quarter. User experience improvements across platforms and devices Truecaller continues to enhance the overall experience by delivering product and performance improvements for even greater convenience for users, and in the first quarter in-app engagement grew by 19%. Among these enhancements were improvements to managing contacts, which not only streamlined the flow, but also introduced a simpler method for users to contribute suggested names, fostering a new channel for community feedback. Truecaller continued refining such feedback mechanisms on both Android and iOS platforms, making it easier for users to contribute in the form of spam reports, fraud alerts, survey responses, and more. By the end of the first quarter, over 20% of users were actively contributing insights. Other improvements enable greater efficiency and convenience for users. For iPhone users in the US, SMS filtering was optimized using machine learning to more accurately sort messages into relevant inboxes (e.g., junk, coupons, etc.). These optimizations, implemented locally on the user's device, ensure complete privacy protection while improving algorithmic accuracy, ensuring messages are correctly sorted. Truecaller also achieved a significant milestone, continuing to extend its service beyond mobile devices. Launched at the end of the first quarter, Truecaller for Web expands the app’s features to desktop users, offering SMS and chat, call alerts, and number search functionalities. Truecaller Android users globally can now link their devices, bridging the gap between mobile and desktop communication preferences. This not only enhances user convenience but also opens up opportunities for additional features, business integration and other use cases. Truecaller continued leveraging machine learning to elevate user experience by expanding its applications beyond caller ID and spam detection. The rollout of ZipZip, Truecaller’s AI chatbot that manages support errands, was launched for desktop in the previous quarter, and in the ===== SIDA 11 ===== 11 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB first quarter it was expanded for use on Android and iOS. With the ability to respond to customer questions in over 50 languages and continually improving its capabilities through machine learning, ZipZip offers users the convenience of immediate customer support while simultaneously reducing support ticket volumes. Within one month of mobile integration, Truecaller observed a marked improvement in customer satisfaction, accompanied by a notable decline in support tickets from users across mobile platforms by 25%. At the end of the first quarter, Truecaller introduced TrueTalks, a dedicated online community serving as a global hub for Truecaller users. This platform fosters connections among users, provides insights from the Truecaller team, offers early access to new features and updates, and enables direct user influence on future product developments through suggestions and feedback. Unlocking revenue potential on iPhone and Premium offerings On iPhone, the company continues to focus on driving revenue growth across both free and paid versions of the app, converting more users into subscribers while finding innovative ways to monetize free users more effectively. One key avenue for revenue grow th is the introduction of more engaging ad inventory throughout the app, which continued to scale well. Advertising revenue from iPhone users witnessed substantial growth in the first q uarter, increasing by almost 200% compared to the same period last ye ar. Truecaller continues to explore additional opportunities to monetize the free offering on the iPhone app without compromising user experience. On the subscriptions front, targeted initiatives aimed at converting iPhone users into paid subscribers have yielded positive results. These efforts have led to significant growth in both subscribers and recurring revenues from the iOS platform across markets. Revenue from iPhone subscribers in the US demonstrated particularly good performance, growing by 100% year on year. As the share of iPhone users continues to expand, Truecaller remains committed to investing in product enhancements on the platform to deliver the best search and Caller ID experience globally. Consumer subscriptions more broadly continue to demonstrate robust growth, with year-on-year increases in revenue and subscriber, at 25% and 15% respectively, across both iPhone and Android. The growth of paying users continues to outpace the overall user base, underscoring the increasing relevance of the Premium experience as Truecaller's offerings evolve. Truecaller continues to develop new packages and refine existing Premium offerings; the introduction of the aforementioned Max spam protection, for example, has shown strong conversion potential, with the average daily new subscribers increasing by 40% from this sales funnel since its launch. Truecaller's investments in Call Recording and Assistant, powered by cloud telephony technology, continue to bear fruit. Call Recordin g, enriched with voice -to-text transcriptions and LLM -facilitated summaries, saw further enhancements during the quarter, including support for more languages and expansion into seven additional markets, including India, which demonstrated strong early adoption. The Assistant offering also demonstrated positive developments in product localization, revenue growth, and subscriber retention, with the latter witnessing remarkable growth from 40% to 70% on Android since its launch. New offerings leveraging cloud telephony technology are in development, harnessing cloud telephony technology to tackle a range of communication challe nges, including combating fraudulent activities. With a focus on leveraging AI to address various forms of fraud, these upcoming offerings aim to enhance user security by detecting suspicious communication. Further investments in advertising capabilities Truecaller continues to enhance its advertising capabilities through strategic investments spanning across the supply, demand, and AdTech areas. On the supply side, Truecaller has introduced new ad formats aimed at monetizing user attention while better serving advertiser objectives across the funnel. These ===== SIDA 12 ===== 12 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB formats include mobile rich media ad interface definitions (MRAID) compatible rich media and video, tailored for top- of-the-funnel objectives such as branding and awareness. Additionally, ad units like carousels, microsites, and suggested apps are being optimized to drive enhanced ROI on performance objectives. The adoption of these formats by advertisers and their initial performance results have been promising, setting the s tage for further scalability. Foundational metrics such as ad request efficiency, render rate, viewability, and ad engagement —critical to monetization efforts —continue to demonstrate incremental gains. These improvements not only bolster Truecaller's ability to monetize each user interaction effectively but also enhance advertiser ROI o n their advertising spends. The enhancements in inventory quality have garnered recognition from Pixalate, a prominent publisher measurement platform, which ranked Truecaller as the top Google Play Store app for Open Programmatic advertising in the EMEA market in February 2024. On the iOS side, monetization efforts have outpaced the growth in iOS users and engagement, driven by high CPM ad formats and markets with higher ARPU. Demand from the ongoing IPL season demonstrated the potential of these supply -side changes when the market recovers. On the demand side, Truecaller continues to execute its two-pronged strategy, leveraging both direct sales and third party programmatic partners to enhance access to demand. The first quarter witnessed a record number of third party programmatic partners integrated into Truecaller’s a d stack, encompassing global and regional AdTech players. This effort is poised to catalyze demand for the billions of ads opportunities generated daily in India and other global markets. Simultaneously, direct sales initiatives are advancing, forging stro nger relationships with advertisers and agencies to augment access to demand. Such progress is facilitated by the expansion of Truecaller's product offerings and use cases, catering to diverse advertiser needs and scenarios. Investments in AdTech drive the development of supply and demand side capabilities aimed at achieving revenue objectives. A flexible integration path for programmatic partners, improved auction orchestration, and efficient traffic channeling continued to p ropel third -party programmatic demand scale up through Truecaller’s in - house ad server. Enhanced features such as pacing and targeting, a wider variety of ad formats, first -party data refinement, and improved collaboration with ecosystem partners such as m obile measurement partner solutions further enhance direct advertiser offerings, strengthening Truecaller’s position as a full stack advertising solution. Continued enterprise expansion and product development Truecaller for Business (TfB) continued to demonstrate strong revenue growth, primarily driven by healthy demand for the Verified Business product. In parallel, TfB’s portfolio of accounts grew by 37% year on year, while the average revenue per account also reached an all -time high, underscoring the growing significance and value proposition of Truecaller's enterprise solutions. Notably, Truecaller continues to secure larger deals and enjoys strong retention among its major accounts. The enterprise offering demonstrates a clear product-market fit within the banking and financial services sector, with an expanding customer base from various industries. Outside of India, adoption of TfB is steadily gaining traction, with prominent brands such as WOM Chile (a m ajor telecom operator in LATAM) and Talabat Egypt (the largest food delivery brand in MENA) onboarded during the first quarter. Truecaller's business messaging solution, delivered in partnership with leading CPaaS provider Tanla, facilitates secure, reliable, and cost-efficient distribution of messages to end customers. During the first quarter, implementation continued to scale, with over 2.3 billion messages delivered to end users on this channel — a 49% growth in volume compared to the same period last year. The company continues to enhance its business messaging capabilities, introducing rich media functionalities to the market in the first quarter. This advancement enables businesses to deliver dynamic and engaging messages, including, for example, various attachment types and customized calls to action. This lays the groundwork to drive even higher user engagement through capab ilities that enable two -way communication between users and businesses. Truecaller continues to invest strategically in product development for the enterprise offering to address the evolving needs of business customers. Truecaller’s Call Management APIs, which help businesses to deliver personalized calling experiences to the ir end users, continue to evolve and strengthen the Verified Business experience. Risk intelligence, Truecaller’s most recently commercialized enterprise offering, is a scoring engine leveraging proprietary machine learning technology to evaluate the risk associated with phone numbers. Early business customers have already been onboarded, and the pipeline for the new product is developing well. Truecaller continues to invest in improving the service by adding analytics and more data signals to deliver even more valuable insights to business customers. In line with its commitment to meeting the evolving needs of enterprise customers, Truecaller implemented several enhancements in the first quarter to streamline the post - sales experience. By automating processes such as reseller invoicing and subscription scheduling, Truecaller aims to empower business customers to maximize their TfB experience seamlessly. These changes underscore Truecaller's dedication to providing unparalleled support and value to its enterprise customers. ===== SIDA 13 ===== 13 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Other disclosures Notice of Annual General Meeting Truecaller's AGM will take place on Thursday, May 23 at 10:30 am at Truecaller's premises at Mäster Samuelsgatan 56, 6th floor. The complete notice, full proposals, and more information are available on Truecaller's website https://corporate.truecaller.com/governance/general- meetings. Selection of proposals for the Annual General Meeting The Board proposes: • A dividend of 1.70 SEK per A-share and B-share. The record date for the dividend is proposed to be May 27, 2024. If the Annual General Meeting resolves in accordance with the proposal, the dividend is expected to be paid through Euroclear Sweden AB on May 30, 2024. • That the Annual General Meeting authorizes the Board to decide on the issuance of new B shares, convertibles, and/or subscription warrants entitling to the subscription or conversion of B- shares. The total number of B-shares that may be issued corresponds to a dilution of a maximum of approximately ten percent of the number of issued shares after the proposed share buyback. • That the Annual General Meeting authorizes the Board to repurchase B-shares up to the point where the company's holdings of shares, at any time, do not exceed ten (10) percent of the total number of outstanding shares in the company. • To decide on a reduction of the share capital through a buyback of the 28,647,115 repurchased B-shares (approximately 7.5% of the outstanding share capital) and a corresponding increase in the share capital through a bonus issue. • Decision on the introduction of incentive programs with a maximum dilution of approximately 2.4 percent of the outstanding capital. The Nomination Committee proposes: • Re-election of all board members except Bing Gordon, who has declined re-election to the board. Risks and uncertainties Like all companies. Truecaller is exposed to various types of risk in the course of business. These include risks related to currency movements. dependence upon certain strategic partners. the general economic trend and developments in the financial market . technical progress. dependence on key individuals. legal risks and risks associated with personal privacy. as well as tax risks and political risks. Risk management is an integrated component of the management of Truecaller. The risks described for the Group could also have indirect impact on the parent company. A complete description of risks and uncertainties associated with Truecaller is provided in the 202 3 annual report. Forward-looking statements The report presents statements pertaining to matters including Truecaller’s financial position and performance as well as statements on market conditions that may be forward-looking. Truecaller believes the expectations reflected in these forward -looking s tatements are based on reasonable assumptions. Forward -looking statements are. however. associated with risks and uncertainties and actual outcomes or consequences may differ materially from those presented here. In addition to that required under applicab le law. forward -looking statements apply only on the date presented and Truecaller disclaims any obligation to update them in the light of new information or future events. Outlook Truecaller does not publish forecasts. Parent Truecaller AB. CRN 559278 -2774. is a Swedish public company whose registered office is in Stockholm. Sweden. Financial calendar Annual General Meeting: 23 May 2024 Interim report January-June 2024: 19 July 2024 Interim report January-September 2024: 7 November 2024 Year-end report January-December 2024: 18 February 2025 Contact details Alan Mamedi, CEO E-mail: alan.mamedi@truecaller.com Odd Bolin, CFO Tel: +46 70 428 31 73 E-mail: odd.bolin@truecaller.com Andreas Frid, Head of IR & Communication Tel: +46 705 29 08 00 E-mail: andreas.frid@truecaller.com Auditor’s review This year-end report has not been reviewed by the company’s auditor. This interim report constitutes insider information that Truecaller AB is required to disclose under the EU Market Abuse Regulation. The information was released for publication, through the agency of the contact persons above, on 7 May 2024 at 07.30 CET. ===== SIDA 14 ===== 14 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed consolidated statement of profit or loss Amounts in SEK 000s Note 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Net sales 3 427,188 387,064 1,728,895 Other income 1,088 21 2,598 Work performed by the entity and capitalized 2,754 1,018 8,930 Third party fees -104,354 -96,108 -421,203 Other external costs -80,735 -57,118 -255,209 Employee costs -94,897 -84,830 -361,127 Depreciation, amortization and impairments -13,018 -10,220 -45,207 EBIT (operating profit) 138,025 139,827 657,677 Net financial income or expense 35,498 7,199 54,616 Profit or loss after net financial income or expense 173,523 147,026 712,293 Tax -40,474 -37,906 -175,960 Profit for the period 1) 133,049 109,120 536,333 Earnings per share Basic earnings per share (SEK) 0.38 0.30 1.49 Diluted earnings per share (SEK) 0.38 0.30 1.49 Average number of shares before dilution 349,479,244 367,572,311 359,728,698 Average number of shares after dilution 349,479,244 367,572,311 359,728,698 1) The profit for the period is attributable entirely to shareholders in the parent company. ===== SIDA 15 ===== 15 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Consolidated statement of comprehensive income 1) The profit for the period is attributable entirely to shareholders in the parent company. Amounts in SEK 000s Note 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Profit or loss for the period 133,049 109,120 536,333 Other comprehensive income for the period Items that will be reclassified to profit and loss in subsequent periods Foreign exchange translation differences 10,647 -952 -10,533 Items that will not be reclassified to profit and loss in subsequent periods Remeasurements of defined-benefit pension plans - - 3,140 Other comprehensive income for the period 10,647 -952 -7,393 Comprehensive income for the period 1) 143,696 108,168 528,941 ===== SIDA 16 ===== 16 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed consolidated statement of financial position Amounts in SEK 000s Note 2024 31 Mar 2023 31 Mar 2023 31 Dec ASSETS Non-current assets Goodwill 47,624 33,653 45,432 Other intangible assets 25,630 14,567 24,993 Property. plant and equipment 18,172 17,642 18,352 Right-of-use assets 121,246 136,932 118,805 Non-current financial assets 4 32,698 - 32,698 Deferred tax assets 38,772 38,022 34,878 Other non-current receivables 4 15,096 14,777 26,584 Total non-current assets 299,239 255,592 301,742 Current assets Current receivables 4 358,327 260,415 285,995 Short-term placements 4 954,638 907,941 941,256 Cash and cash equivalents 4 591,856 699,510 631,347 Total current assets 1,904,821 1,867,865 1,858,599 TOTAL ASSETS 2,204,060 2,123,457 2,160,340 EQUITY AND LIABILITIES Equity Equity attributable to owners of the parent 1,823,264 1,738,400 1,743,703 Total equity 1,823,264 1,738,400 1,743,703 Non-current liabilities Liability arising from defined-benefit pension plans 7,609 6,345 6,608 Lease liabilities 98,491 115,559 98,176 Deferred tax liability 42,923 33,532 38,731 Other non-current liabilities 4 10,497 8,568 9,150 Total non-current liabilities 159,520 164,003 152,665 Current liabilities Lease liability 25,586 21,820 22,763 Other current liabilities 4 195,689 199,234 241,208 Total current liabilities 221,275 221,055 263,972 TOTAL EQUITY AND LIABILITIES 2,204,060 2,123,457 2,160,340 ===== SIDA 17 ===== 17 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed consolidated statement of cash flows Amounts in SEK 000s 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Operating activities Profit or loss after net financial income or expense 173,523 147,026 712,293 Adjustments for non-cash items 1,670 10,935 26,047 Income tax paid -57,717 -46,586 -213,822 Cash flow from operating activities before changes in working capital 117,475 111,374 524,519 Net cash from changes in working capital Change in operating receivables -39,131 -6,616 19,066 Change in operating liabilities -22,481 -24,623 38,377 Net cash from operating activities 55,863 80,136 581,962 Investing activities Acquisitions of Group companies, net effect on cash and cash equivalents - - -27,422 Purchases of property, plant and equipment -779 -10,551 -17,070 Purchases of intangible assets -2,754 -1,141 -8,930 Purchases of short-term investments - -500,000 -500,000 Change in financial receivables - -7,450 -40,766 Investment in non-current financial assets - - -32,679 Net cash used in investing activities -3,533 -519,143 -626,868 Financing activities New share issue - - 66 Funds received for warrants - - 46,718 Repurchase of warrants -18,235 - -450 Amortization of lease liability -7,931 -6,926 -29,869 Buyback of treasury shares -74,751 -182,164 -659,548 Net cash from (-used in) financing activities -100,917 -189,090 -643,082 Net cash flow for the period -48,587 -628,098 -687,988 Cash and cash equivalents at the beginning of the period 631,347 1 327,801 1,327,801 Foreign exchange differences in cash and cash equivalents 9,096 -194 -8,466 Cash and cash equivalents at the end of the period 591,856 699,510 631,347 ===== SIDA 18 ===== 18 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed consolidated statement of changes in equity Equity attributable to owners of the parent Amounts in SEK 000s Share capital Other capital contributions Reserves Retained profits including profit for the period Total equity attributable to owners of the parent Opening balance at 1 January 2023 758 1,710,139 2,400 90,797 1,804,093 Profit for the period - - - 109,120 109,120 Other comprehensive income for the period - - -952 - -952 Comprehensive income for the period - - -952 109,120 108,168 Transactions with owners of the Group Treasury shares after transaction costs - - - -184,470 -184,470 Share-based payment - - - 10,610 10,610 Total - - - -173,861 -173,861 Closing balance at 31 March 2023 758 1,710,139 1,448 26,056 1,738,400 Opening balance at 1 January 2024 762 1,738,298 -8,133 12,776 1,743,703 Profit for the period - - - 133,049 133,049 Other comprehensive income for the period - - 10,647 - 10,647 Comprehensive income for the period - - 10,647 133,049 143,696 Transactions with owners of the Group Share issue - - - - - Treasury shares after transaction costs - - - -74,751 -74,751 Warrants - - - - - Share-based payment - - - 10,616 10,616 Total - - - -64,135 -64,135 Closing balance at 31 March 2024 762 1,738,298 2,514 81,691 1,823,264 ===== SIDA 19 ===== 19 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed parent company income statement Amounts in SEK 000s Note 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Operating revenue 1,929 1,566 8,191 Other external costs -2,724 -2,541 -9,918 Employee costs -2,972 -2,763 -11,675 EBIT (operating profit) -3,766 -3,738 -13,403 Net financial income or expense -272 5,181 400,695 Profit or loss after financial items -4,038 1,443 387,292 Appropriations - - 13,000 Profit or loss before tax -4,038 1,443 400,292 Tax 774 -295 -131 Profit or loss for the period -3,264 1,148 400,162 ===== SIDA 20 ===== 20 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Condensed parent company balance sheet Amounts in SEK 000s Note 2024 31 Mar 2023 31 Mar 2023 31 Dec ASSETS Non-current assets Investments in Group companies 10,297,177 10,297,177 10 297 177 Deferred tax receivable 824 Total non-current assets 10,298,001 10,297,177 10 297 177 Current assets Current receivables 6,915 12,739 6,124 Receivables from Group companies 11,185 12,471 13,688 Short-term placements 400,000 405,193 400,000 Cash and cash equivalents 91,401 173,472 176,479 Total current assets 509,502 603,875 596,291 TOTAL ASSETS 10,807,503 10,901,053 10,893,468 EQUITY AND LIABILITIES Equity and liabilities Equity 10,802,866 10,886,786 10 870 265 Current liabilities 4,637 14,226 23 203 TOTAL EQUITY AND LIABILITIES 10,807,503 10,901,053 10 893 468 ===== SIDA 21 ===== 21 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Notes Note 1. Significant accounts policies This interim report covers the Swedish parent company Truecaller AB (“Truecaller”), company registration number 559278-2774, and its subsidiaries. The principal business of the Group is to develop and publish software. primarily mobile Caller ID applications , under the Truecaller brand. The parent is a limited liability company registered and domiciled in Stockholm , Sweden. The address of the head office is Mäster Samuelsgatan 56, 111 21 Stockholm. Sweden. Truecaller applies International Financial Reporting Standards (IFRS). as adopted by the EU. The interim report for the Group was prepared in compliance with IAS 34 Interim Financial Reporting and applicable sections of the Swedish Annual Accounts Act (199 5:1554). Disclosures according to IAS 34 are provided in other parts of the interim report. in addition to the financial statements. The interim report for the parent company was prepared in accordance with the Annual Accounts Act. Chapter 9 Interim Financ ial Reporting. and recommendation RFR 2 Accounting of Legal Entities issued by the Swedish Financial Accounting Standards Council. The accounting principles , basis for measurement and estimates and judgements applied on the interim report for the Group and the parent are identical to those applied in Truecaller’s annual report. Accordingly, refer to the most recently published annual report for a description of applied accounting policies. Equity Shares issued by the company are classified as equity. Additional costs arising directly from the issue of common shares and stock options are recognized as a debit item in equity after deducting tax effects , if any. When Truecaller’s shares classified as equity are repurchased. the amount of consideration paid is recognized as a reduction in equity. after deducting tax effects. if any. Repurchased shares are classified as treasury shares and recognized as a d ebit item under equity. When treasury shares are subsequently sold or reissued. the amount received is recognized as an increase in equity and the surplus or deficit resulting from the transaction is transferred to or from other capital contributions. Financial instruments at fair value The group has non -current financial assets consisting of the investment in Mayhem Studios. The non -current financial assets are valued at fair value through the income statement. As no market quotation exists for the investment, its fair value is determined through other observable data (level 2) Note 2. Key judgements and estimates Preparation of the interim report requires management to make judgements. estimates and assumptions that affect the application of the accounting policies and the recognized amounts of assets , liabilities, revenues and costs. Actual outcomes may differ from these judgements and estimates. The key judgements and sources of estimation uncertainty are unchanged from those described in the most recently published annual report. Note 3. Revenue from contracts with customers DISTRIBUTION OF REVENUE FROM CONTRACTS WITH CUSTOMERS Amounts in SEK 000s 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Geographical region India 316,847 292,158 1,309,882 Middle East and Africa 53,500 49,159 206,366 Rest of the world 56,841 45,747 212,647 Revenue from contracts with customers 427,188 387,064 1,728,895 ===== SIDA 22 ===== 22 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB The geographical distribution is based on where the customer has their mobile subscription. Amounts in SEK 000s 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Type of service Advertising revenues 317,664 303,924 1,346,114 User revenues 58,405 46,546 206,219 Truecaller for Business 49,548 34,375 170,198 Other revenues 1,571 2,219 6,363 Revenue from contracts with customers 427,188 387,064 1,728,895 Note 4. Financial instruments Measurement of financial assets and liabilities at 31 March 2024 FINANCIAL ASSETS Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 15,096 15,096 Non-current financial assets 32,698 - 32,698 Claims on advertising networks and platform owners - 127,584 127,584 Trade receivables - 86,149 86,149 Short-term placements 954,638 - 954,638 Cash and cash equivalents - 591,856 591,856 Total 987,336 820,685 1,808,021 FINANCIAL LIABILITIES Trade payables - 39,922 39,922 Conditional consideration (earnout) 9,161 - 9,161 Total 9,161 39,922 49,083 Measurement of financial assets and liabilities at 31 March 2023 FINANCIAL ASSETS Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 14,777 14,777 Non-current financial assets - - - Claims on advertising networks and platform owners - 93,826 93,826 Trade receivables - 59,984 59,984 ===== SIDA 23 ===== 23 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Short-term placements 907,941 - 907,941 Cash and cash equivalents - 699,510 699,510 Total 907,941 868,096 1,776,037 FINANCIAL LIABILITIES Trade payables - 58,872 58,872 Conditional consideration (earnout) 13,520 - 13,520 Total 13,520 58,872 72,392 Measurement of financial assets and liabilities at 31 December 2023 FINANCIAL ASSETS Financial assets measured at fair value through profit and loss Financial assets measured at amortized cost Total carrying amount Other non-current receivables - 26,584 26,584 Non-current financial assets 32,698 - 32,698 Claims on advertising networks and platform owners - 86,020 86,020 Trade receivables - 75,965 75,965 Short-term placements 941,256 - 941,256 Cash and cash equivalents - 631,347 631,347 Total 973,954 819,916 1,793,870 FINANCIAL LIABILITIES Trade payables - 46,149 46,149 Conditional consideration (earnout) 8,404 - 8,404 Total 8,404 46,149 54,553 The carrying amount is considered a good estimate of the fair value of current receivables and liabilities . The maximum credit risk of the assets comprises the net amounts of the carrying amounts shown in the table above. The Group has short -term placements , conditional consideration (earnouts) and non-current financial assets that are measured at fair value through profit or loss. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement methods are classified in a hierarchy consisting of three levels defined as follows: • Level 1 Quoted prices in active markets • Level 2 Inputs other than quoted prices that are observable directly (prices) or indirectly (derived from prices) • Level 3 Non-observable market data There were no transfers between the levels during the period. The Group has no financial assets or liabilities that have been offset in the accounts or which are covered by a legally binding netting agreement. Short-term placements Truecaller has investments placed in short-term fixed income funds. The fair value of the holding is determined by using market prices on the reporting date according to Level 1. The effect of the measurement at fair value is recognized in profit or loss. The adjustment to the fair value of these instruments is reflected directly in “Short- term placements” in the statement of financial position. Short-term placements, SEK 000s 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Balance at 1 January 941,256 400,490 400,490 Investment in short- term placements - 500,000 500,000 Change in value recognized in profit and loss 13,382 7,451 40,766 Closing balance 954,638 907,941 941,256 ===== SIDA 24 ===== 24 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Conditional consideration (earnout) Conditional consideration is categorized at level 3 of the fair value hierarchy. The fair value of conditional consideration is calculated by discounting future cash flows by a risk - adjusted discount rate. The conditional consideration for CallHero is classified as a non-current liability. Conditional consideration (earnout), SEK 000s 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Balance at 1 January 8,404 13,301 13,301 Acquisition value - - - Payout - - -5,550 Change in value recognized in profit and loss 757 219 653 Closing balance 9,161 13,520 8,404 Non-current financial assets The group’s non -current financial assets consist of the investment in Mayhem Studios that was made in 2023. The non-current financial assets belong to level 2 in the valuation hierarchy. Note 5. Incentive programs The group has three outstanding incentive programs, LTIP 2021, LTIP 2022 and LTIP 2023. LTIP 2023 was approved on The Annual General Meeting on 26 May 2023 an d refers to an employee stock option program and share program for senior executives, key individuals and employees of the Truecaller Group. LTIP 2023 consists of a maximum of 2,800,000 employee stock options and a maximum of 500,000 performance -based share rights. For detailed informationa about LTIP 2021 and LTIP 2022, refer to the 2022 annual report. The Group applies IFRS 2 Share -based Payment to employee stock options and performance -based share rights, where the cost is measured at fair value and allocated over the term of the program and recognized in equity. The Group recognizes a reserve for a ccrued social insurance costs for the program based on the estimated benefit value for participants. Costs of incentive programs, SEKm 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Cost of vested warrants per IFRS 2 -10.5 -10.6 -35.1 Social insurance contributions -0.8 -0.4 -4.8 Costs of incentive programs -11.3 -11.1 -39.9 Note 6. Treasury shares Through the share buyback program that was decided on at the annual general meeting on May 26, 2023, Truecaller has bought back 2,637,368 of its own B shares for SEK 74.8 million including transaction costs during the first quarter. Truecaller's total holding of own shares thus amounts to 27,904,571 B shares and 5,600,000 C shares. Note 7. Contingent liabilities The Group’s contingent liabilities consist of a tax matter in the previously acquired subsidiary Backwater Technologies related to determination of income for FY 2016 -17. The ongoing matter refers to a period prior to the acquisition date. The Group has de termined that it is likely that the outcome will be in its favor and has therefore not recognized a provision in relation to this matter. Note 8. Related party transactions No transactions with related parties have been made during the period. Note 9. Events after the reporting date After the end of the reporting period Truecaller has repurchased an additiona l 742,544 Class B shares for SEK 23.5 million including transaction costs. Truecaller’s total holding of treasury Class B shares thus amounts to 28,647,115. ===== SIDA 25 ===== 25 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Assurance The CEO and the Board of Directors hereby certify that the interim report provides a true and fair view of the operations. position and earnings of the parent company and the Group and describes the material risks and uncertainties faced by the parent company and the companies included in the Group. Stockholm, 2024-05-06 Nami Zarringhalam Board Chair Alan Mamedi Director and CEO Annika Poutiainen Director Helena Svancar Director Bing Gordon Director Shailesh Lakhani Director ===== SIDA 26 ===== 26 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB Alternative performance measurements In accordance with ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. the definition and reconciliation of alternative performance measures used by Truecaller are presented here. The guidelines entail additional disclosures regarding financial measures not defined under IFRS. The performance measures shown below are presented in the interim report. They are used for the purposes of internal control and monitoring. As all companies do not calculate financial measures in the same way. these measures are not always comparable to measures used by other companies. The following measures are measures used by Truecaller to clarify the company’s performance and simplify evaluation for users of the company’s financial reports. Key performance measurements Definition Purpose Gross profit Net sales minus brokerage costs. Gross profit is used to analyze profit minus direct costs (costs related directly to brokerage of ad space and the costs to onboard new premium users). Gross margin Gross profit as a percentage of net sales. Gross margin is a measure of profitability minus direct costs. EBITDA EBIT before interest, taxes, depreciation and amortization. EBITDA is a measurement Truecaller uses to show how current operations develop over time. EBITDA margin EBITDA as a percentage of net sales. EBITDA margin is used to illustrate the profitability of current operations excluding items affecting comparability and before amortization. EBIT (operating profit) Operating profit (earnings) before interest and taxes EBIT is used to analyze the profit generated by the operating entity. EBIT margin EBIT as a percentage of net sales. The EBIT margin is used to illustrate the profitability of current operations. Equity to assets ratio Equity divided by total assets. A measure to illustrate financial risk. expressed as the percentage of total assets financed by shareholders’ equity. Monthly Active Users (MAU) The number of users that have a Truecaller profile and are active on the platform on a monthly basis. Calculated as an average of all days in the period. Used to illustrate the volume of active users of Truecaller’s services. Daily Active Users (DAU) The number of users that have a Truecaller profile and are active on the platform on a daily basis. Calculated as an average of all days in the period. Used to illustrate the volume of active users of Truecaller’s services. Cost per thousand impressions (CPM) CPM illustrates the cost of displaying one ad one thousand times. Used to illustrate the effectiveness of the ad platform. Average revenue per user (ARPU) The average revenue for one recurring paying user (Truecaller Premium) Used to illustrate how revenues per user develop over time. ===== SIDA 27 ===== 27 INTERIM REPORT JANUARY -MARCH 202 4 TRUECALLER AB RECONCILIATION OF SELECTED KEY FIGURES THAT ARE NOT DEFINED UNDER IFRS Group, SEKm 2024 Jan-Mar 2023 Jan-Mar 2023 Jan-Dec Gross profit and gross margin Net sales 427.2 387.1 1,728.,9 Minus third party fees -104.4 -96.1 -421.2 Gross profit 322.8 291.0 1,307.7 Divided by Net sales 427.2 387.1 1,728.9 Gross margin 75.6% 75.2% 75.6% EBITDA and EBITDA margin EBIT (operating profit) 138.0 139.8 657.7 Excluding depreciation and amortization 13.0 10.2 45.2 EBITDA 151.0 150.0 702.9 Divided by Net sales 427.2 387.1 1,728.9 Adjusted EBITDA margin 35.4% 38.8% 40.7% EBIT (operating profit) and EBIT margin EBIT (operating profit) 138.0 139.8 657.7 Divided by Net sales 427.2 387.1 1,728.9 EBIT margin 32.3% 36.1% 38.0% Equity to assets ratio Total equity 1,823.3 1,738.4 1,743.7 Divided by Total assets 2,204.1 2,123.5 2,160.3 Equity to assets ratio 82.7% 81.9% 80.7%